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Wage Protection for Home Care Workers

The Obama administration proposed regulations on Thursday to give the nation’s nearly two million home care workers minimum wage and overtime protections. Those workers have long been exempted from coverage.

Labor unions and advocates for low-wage workers have pushed for the changes, contending that the 37-year-old exemption improperly swept these workers, who care for many elderly and disabled Americans, into the same “companion” category as baby sitters. The administration’s move calls for home care aides to be protected under the Fair Labor Standards Act, the nation’s main wage and hour law.

“They work hard and play by the rules,” President Obama said about a group of workers who often feed patients, tend wounds or help with physical therapy. “Today’s action will ensure that these men and women get paid fairly for a service that a growing number of older Americans couldn’t live without.”

These workers, according to industry figures, generally earn $8.50 to $12 an hour, compared with the federal minimum wage of $7.25 an hour. The White House said 92 percent of these workers were women, nearly 30 percent were African-American and 12 percent Hispanic. Nearly 40 percent rely on public benefits like Medicaid and food stamps.

While industry experts say an overwhelming majority are paid at least the minimum wage, many do not receive a time-and-a-half premium when they work more than 40 hours a week. Twenty-two states do not include home health care workers under their wage and hour laws.

“The job they do is a real job and they deserve the same basic rights as any other workers,” said Steven Edelstein, national policy director of PHI PolicyWorks, a nonprofit group that seeks to improve conditions for home care workers. “This industry has one of the nation’s fastest-growing work forces, and the challenge is to make these better jobs if we’re trying to attract good people to come and provide the services.”

Photo

In 2007, the Supreme Court found that Evelyn Coke, in wheelchair, was not entitled to overtime pay as a health care aide.Credit
Andrew Councill for The New York Times

According to the federal government, six million of the 40 million Americans older than 65 now need some form of daily assistance to live outside a nursing home. That number, government officials say, is expected to double to 12 million by 2030. Republican lawmakers and business groups criticized the proposed rules, which might be modified after a 60-day public comment period. Industry officials said the proposals would push up costs and might cause home care agencies to reduce the hours of aides who work more than 40 hours a week and instead hire more aides.

“The president’s goal is commendable, but the likely result of this new rule is reduced hours for home care workers and higher costs for taxpayers,” said John Kline, a Minnesota Republican who is chairman of the House Education and the Work Force Committee, and Tim Walberg, a Minnesota Republican who heads the panel’s subcommittee on work force protections. “Moreover, our nation’s elderly may pay the greatest price in the form of more costly services and fewer opportunities to obtain the care they need in the comfort of their own homes.”

William A. Dombi, vice president for law at the National Association of Home Care and Hospice, said workers might not receive much overtime pay as a result of these changes. “These new rules might come out with everybody behind,” he said. “Workers might not get the hours they want and agencies might have higher administrative and recruiting costs.”

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Labor Secretary Hilda Solis said any increased costs would be modest. She said it was hard to project exactly what employers would do, whether they would have many employees continue to work overtime or would hire additional workers to minimize overtime. She estimated that Medicare or Medicaid, which cover 75 percent of the nation’s home care costs, would pay $31.1 million to $169.5 million more each year toward home care aides, which she said would represent 0.06 percent to 0.29 percent of federal and state outlays for home care.

Secretary Solis said the proposal would ”level the playing field for staffing agencies, who will no longer be pressured to underpay their competitors on wages to gain an edge.”

Noting that nearly 90 percent of the nation’s home care aides work for agencies, Labor Department officials said such aides would receive the new wage and hour protections. The department said some companions employed by individuals for activities like helping them take walks or engage in hobbies would still be exempt from minimum wage and overtime coverage.

In 1974, the Labor Department exempted “companionship” workers from coverage under the Fair Labor Standards Act, a move that focused on baby sitters at a time when the home care industry was in its infancy.

In 2007, the Supreme Court issued a decision involving a New York home care aide, Evelyn Coke, who often worked 70 hours a week, ruling that she was not entitled to overtime pay under existing regulations. The court said it was up to Congress or the Labor Department to change the rules.

A version of this article appears in print on December 16, 2011, on Page B2 of the New York edition with the headline: Wage Protection for Home Care Workers. Order Reprints|Today's Paper|Subscribe